What's Happening?
Pratt & Whitney, a subsidiary of RTX, has significantly surpassed its initial commitments for its turbine airfoil manufacturing plant in southern Buncombe County, North Carolina. Announced in 2020, the company pledged to invest at least $650 million and
create 800 new jobs by 2027 with an average annual wage of $62,413. Six years later, Pratt & Whitney has invested nearly $1 billion and currently employs 1,000 workers, well ahead of its 2027 target. The company anticipates employing 1,200 workers by 2027. The local spokesperson, Cataldo Perrone, confirmed these figures, highlighting the plant's critical role in meeting the strong demand for commercial and military jet engines globally. Buncombe County Board of Commissioners Chair Amanda Edwards noted that the county has provided $7.3 million in incentives to Pratt & Whitney, part of a larger $30.7 million in economic development agreements with 11 companies since 2010, which have collectively created 2,654 jobs. The company's most recent report to the county in October showed actual wages averaging $73,824, exceeding the committed average.
Why It's Important?
The overperformance by Pratt & Whitney in Buncombe County is significant for the local economy, particularly in diversifying job opportunities beyond the hospitality and tourism sectors. The creation of high-tech manufacturing jobs with above-average wages provides stability and growth for the region's tax base, a key concern for local governments. These jobs also have a 'multiplier effect,' with every 100 new direct aerospace jobs supporting an additional 78 jobs in Buncombe County, according to Clark Duncan, executive director of the Economic Development Coalition for Asheville & Buncombe County. This influx of well-paying positions helps address the challenge of high housing costs and lower wages compared to national averages in western North Carolina. The success of this project also validates the use of economic incentives, which are tied to job creation and capital investment benchmarks, ensuring corporate accountability and a return on investment for the community. The long-term presence of such companies contributes to a stable economic environment, contrasting with the fluctuating nature of sales taxes.
What's Next?
Pratt & Whitney plans to continue hiring, aiming for 1,200 employees by 2027. The company recently announced an additional investment of $285 million and 325 new jobs in Asheville. A significant development is the upcoming Western North Carolina Futures Factory, a 70,000-square-foot facility funded by a $29.2 million grant from the U.S. Economic Development Administration. Located next to the Pratt & Whitney plant, this facility will train 800 workers annually for various industries, not just Pratt & Whitney, and is expected to become an innovation hub for Western North Carolina. This initiative, a partnership between University of North Carolina system campuses, community colleges, and the private sector, aims to elevate the skill set of employees across the region. Biltmore Farms CEO Jack Cecil hopes to attract other high-tech manufacturers to the 1,000-acre Biltmore Park West industrial site, further expanding the manufacturing sector in the area.
Beyond the Headlines
The success of Pratt & Whitney in Buncombe County highlights a broader debate regarding economic development incentives and their role in attracting major corporations. While local officials like Amanda Edwards and Clark Duncan emphasize the return on investment through job creation and tax base stabilization, critics view these incentives as 'corporate welfare,' particularly for companies with military contracts. Ken Jones, a protester, argues that investing in sectors like education, healthcare, and clean energy would create more jobs than the military industry. This perspective underscores the ethical and societal implications of supporting industries with military ties. However, the project also showcases the effectiveness of strategic investments in workforce development, such as customized industrial training programs offered by North Carolina's community colleges, which have been crucial in quickly training and onboarding new workers, many of whom are local to western North Carolina. This model of public-private partnership in workforce development could serve as a blueprint for other regions seeking to attract and retain high-tech manufacturing jobs.
